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Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries

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Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries Transform Aqorau, Kamal Azmi, Elizabeth Havice, Stuart Kaye, Stuart Kininmonth, Moses Mataika, Sarah McTee, Anthony Morrison, Lars Olsen, Mark Soboil, Siale Suamalie, Salome Taufa, Alice Thomas-Smyth, and John Virdin Nicholas Institute for Environmental Policy Solutions nicholasinstitute.duke.edu Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries Author Affiliations Transform Aqorau: iTuna Intel Kamal Azmi, Stuart Kaye, and Anthony Morrison: University of Wollongong, Australia National Centre for Ocean Resources & Security Elizabeth Havice: University of North Carolina – Chapel Hill Stuart Kininmonth, Moses Mataika, Siale Suamalie, and Salome Taufa: University of South Pacific, School of Marine Studies Sarah McTee and Alice Thomas-Smyth: Environmental Defense Fund Lars Olsen and Mark Soboil: Independent experts John Virdin: Duke University’s Nicholas Institute for Environmental Policy Solutions Citation Aqorau, T., K. Azmi, E. Havice, S. Kaye, S. Kininmonth, M. Mataika, S. McTee, A. Morrison, L. Olsen, M. Soboil, S. Suamalie, S. Taufa, A. Thomas-Smyth, and J. Virdin. 2020. Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries. NI Report 20-09. Durham, NC: Duke University. Acknowledgements The authors gratefully acknowledge the valuable peer- review provided by Dr. Dale Squires, and for economic case studies in Chapter Four, Professor Chris Anderson. The authors wish to thank the 21 senior Pacific Island fishery managers and thought leaders that took valuable time to speak with us. Support for this project was provided by The Walton Family Foundation. The views expressed are those of the authors. Published by the Nicholas Institute for Environmental Policy Solutions in 2020. All Rights Reserved. Publication Number: NI R 20-09 Cover Image: Quentin Hanich CONTENTS Assessing the Potential for Transferability of Access Rights to Enhance Sustainability in Large Pacific Tropical Fisheries 1 Summary for Pacific Island Policy Makers 2 Chapter 1: Introduction 11 1.1 The Policy Context in the Pacific Islands 11 1.2 Motivation for Carrying Out This Study 11 1.3 Roadmap to the Remaining Chapters of the Study 12 1.4 Overview of Methods Used 12 Chapter 2: The Conceptual Basis for Defining Transferability in the Context of Pacific Island Tuna Fisheries 15 2.1 The Units of Analysis: Pacific Island Tuna Fisheries, Described as Socioecological Systems 15 2.2 The Role of Fisheries Governance within the Socioecological Systems Framework 16 2.3 The Role of Property Rights Created by Fisheries Governance 16 2.4 Application of These Concepts to Western Pacific Tuna Fisheries 25 Chapter 3: Snapshot of the Perspectives of Pacific Island Thought Leaders and Tuna Fisheries Managers 31 3.1 Current Understanding of Transferable Tuna Fishing Rights in the WCPO 31 3.2 Perceptions of Transferability in WCPO Purse Seine and Longline Fisheries 33 3.3 Perceived Economic Costs and Benefits to PICTs from Introducing Transferability of Tuna Fishing Rights 34 3.4 Perceived Challenges and Concerns for Introducing and Administering Transferability of Tuna Fishing Rights 36 3.5 Beyond Transferability, Perceptions of the Biggest Opportunities to Increase Economic Benefits to PICTs from the Tuna Fisheries 38 Chapter 4: Case Studies in the Potential Economic Benefits to Pacific Island Countries and Territories from the Introduction of Transferability 40 4.1 Case Study on the Purse Seine Tuna Fishery 40 4.2 Case Study on the Tropical Longline Tuna Fishery 45 Chapter 5: Legal Issues and Options for Transferability of Pacific Island Tuna Fishing Rights: Current Practice and Models for the Region 46 5.1 Introduction 46 5.2 Fishing Rights Specified through Licensing 46 5.3 Transferability 46 5.4 Regional Practice 47 5.5 Legislative Models for Transferability of Tuna Fishing Rights in the WCPO 47 5.6 PPSA and Fisheries Rights in Australia and New Zealand 53 5.7 Conclusions 56 Chapter 6: Implications for Pacific Island Countries and Territories 58 6.1 Options for Introducing Transferability of Tuna Fishing Rights in the Short-Term, in Each of the Three Tuna Fisheries 58 6.2 Opportunities for PICTs from the Option of Introducing Transferability between Authorized Users in the Purse Seine Fishery 58 6.3 Risks to PICTS from Introducing Transferability between Authorized Users in the Purse Seine Fishery 59 6.4 Legal Requirements for Transferability of Tuna Fishing Rights between Authorized Users 61 6.5 Implications for PICTs Going Forward 61 References 64 Annex I. Background on Governance Concepts Underpinning the Study, and Overview of Current Pacific Tuna Fisheries Governance 69 Annex II. Detailed Description of the Methods Used in the Case Studies 82 Annex III. Pacific Island Country and Territory Legislation Reviewed 87 Annex IV. List of Interview Questions 125 Summary for Pacific Island Policy Makers INTRODUCTION: THE GOAL AND MOTIVATIONS FOR CONDUCTING THIS STUDY This study was conducted in order to identify options for the transferability of fishing rights in the context of Pacific Island commercial longline and purse seine tuna fisheries (where the rights are denominated in units of fishing effort, i.e., fishing days), including the scale of potential benefits and costs to countries and territories in the region, and key issues that would need to be considered by decision makers in order to develop specific policy proposals. The study does not aim to predict the costs and benefits of specific policy proposals for transferability, but rather to conduct an initial scoping that would allow for such a detailed analysis to take place, and to provide a sound basis of information for policy dialogue in the region. The motivation for conducting this study was to provide information that can assist policy makers and fisheries managers in the region to consider if this policy instrument (enhanced transferability of fishing rights) could support achievement of the goals agreed in the Regional Roadmap for Sustainable Pacific Fisheries.1 Achieving these goals will take significant effort in this, one of the world’s largest and most complex fisheries to manage. The tuna fisheries most relevant to Pacific Island countries and territories (PICT) are the units of analysis here: the purse seine fishery, the tropical longline fishery, and the southern albacore fishery. Numerous successes and innovations in governance of the purse seine fishery have led to exponential growth in economic benefits for Pacific Island countries and territories, but as this growth has slowed, future gains are likely to be incremental and result from greater efforts to strengthen governance and enhance efficiency— such as introducing transferability. At the same time, economic benefits to the region from the two longline fisheries have stagnated, and governance innovations are both needed and currently underway or in development. This study was proposed by a group of regional thought leaders in part to consider if transferability might be one such innovation, based on examples in other fisheries where limited fishing rights were allocated to vessels and operators with differing levels of efficiency, and the creation of a secondary market in these rights allowed for vessels and/or operators to trade in order to increase the overall efficiency of the fishery and economic outcomes. THE CONCEPTUAL BASIS FOR DEFINING TRANSFERABILITY OF FISHING RIGHTS IN THE CONTEXT OF PACIFIC ISLAND TUNA FISHERIES Well-established research on the role of property rights in governance of common pool resources such as fish stocks, forms the basis for this study. The study draws upon decades of theoretical and empirical research on the performance of different governance regimes in complex systems such as Pacific Island tuna fisheries, pioneered at Indiana University’s Workshop in Political Theory and Policy Analysis. From this work, the study provides a summary of the role of property rights in governing commercial fisheries in general, and with particular attention to complications associated with highly migratory species. The specific property rights characteristics of the rules Nicholas Institute for Environmental Policy Solutions, Duke University | 5 governing fishing have been shown to be one of the key factors driving fishing effort and catch in commercial fisheries, and one of the key solutions to the commons problem inherent in fisheries. Nicholas Institute for Environmental Policy Solutions On this basis, the property rights characteristics of the rules governing tuna fishing are defined, The Nicholas Institute for Environmental Policy with transferability being one dimension of these rights. Common characteristics of fishing rights Solutions at Duke University is a nonpartisan also include the type of rights holder, the space over which the rights apply, the stringency with institute founded in 2005 to help decision which the rights are enforced, and the time prescribed for the rights. Based on these common makers in government, the private sector, characteristics, the rules governing tuna fishing in the Pacific Islands can be summarized, as and the nonprofit community address critical shown in the following framework (which uses the Vessel Day Scheme for the purse seine and environmental challenges. The Nicholas Institute responds to the demand for high-quality
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